Chapter 5 section 1
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Chapter 5 Section 1. Creating a Constitution. Articles Fail:. Trade: Following the war, British merchants flooded American markets with inexpensive goods (Competition for American Merchants). Problem: No centralized government to regulate trade.

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Chapter 5 Section 1

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Chapter 5 section 1

Chapter 5 Section 1

Creating a Constitution


Articles fail

Articles Fail:

  • Trade:

  • Following the war, British merchants flooded American markets with inexpensive goods (Competition for American Merchants).

  • Problem: No centralized government to regulate trade.

  • States would not impose the same taxes on imports. British merchants would land their goods at states with lowest taxes.

  • States set up custom posts on their borders and levied taxes on interstate commerce.

  • These actions weakened the Articles of Confederation.


Diplomatic problems

Diplomatic Problems:

  • The Federal Government had no power over the states.

  • It could not force states to pay their debts or return property to Loyalist who lost their land following the revolution.

  • Congress had no way of raising money to pay off debt.

  • Result: British refused to evacuate American soil.

  • Problem with Spain: Border dispute between Georgia and Spanish Florida. American farmers could not trade in Spanish territory along the Mississippi River.


Economic crisis

Economic Crisis:

  • The U.S. Suffered through a severe recession following the war.

  • To finance the war, many states issued bonds that were sold to wealthy American citizens.

  • To pay back the bonds, citizens argued for the states to issue paper money.

  • Problem: States didn’t have the gold and silver to back the paper currency.


Shays rebellion

Shays Rebellion:

  • Occurred in MA in 1786.

  • MA government decided to raise taxes instead of issuing paper money.

  • Those who could not afford the taxes lost their property.

  • 1,200 farmers led by Daniel Shays tried to prevent farm foreclosures by attacking the state arsenal.

  • Result: MA militia defended the arsenal and killed 4 of Shays men.

  • Many Americans realized that the Articles had failed and the need for a stronger central government was evident.


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